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New Paradigm in governance

By : brainykey   May 17, 2017

  •  Governance ( GS2)
  •   Minimum Government and Maximum Governance
  •   Cooperative Federalism



  • The recent changes in the governance in India can be studied broadly under
  • First under Cooperative and Competitive Federalism: It is based on the philosophy that centre alone cannot transfer India. It needs a partnership of the States.
  • Second, the government will have to do things very differently (less activity in some spheres, much more activity in others)

Cooperative and Competitive Federalism

  • The government must shift from centralize planning towards multi-level planning.
  • It needs to discard the one-size fit all approach.
  • Different needs and potential of the states must be recognized.
  • States must have greater say in the planning and implementation process
  • Competitive Federalism means race to the top as States compete with one another on various parameters.

Following steps taken for the promotion of Cooperative Federalism

  • The abolition of the Planning Commission,
  • Rationalisation of centrally-sponsored schemes ,
  • Greater devolution of finances to the States by the 14th Finance Commission laid,
  • For the first time, States have a say in Union policy — subcommittees of CMs have studied Skill India, Swachh Bharat, centrally sponsored schemes and digital payments.

Following steps taken for the promotion of Competitive Federalism

  • There is now a ranking of States on the Ease of Doing Business,
  • There will soon be indices for health, education and water outcomes,
  • Centre’s role is limited to conceptualising the indices and monitoring their integrity,
  • Centre should help the states by sharing of best practices and model laws.

Minimum Government and Maximum Governance

  • It means that the state retreats from spheres where it plays an obviously counterproductive role, like in making it difficult to do business through over-regulation (there is a commitment to improve India’s ranking in
  • The focus is to improve India’s ranking in World Bank’s Ease of Doing Business Survey.
  • It doesn’t mean a complete retreat of the state from spheres of economic activity.
  • It stresses to weed out the underperforming enterprises while strengthening and giving autonomy to those which can thrive.
  • The state cannot retreat altogether but it has to be more efficient in carrying out its activities.

Following steps taken for Minimum Government and Maximum Governance

  • Subsidised (but not free) insurance
  • Pradhan Mantri Suraksha Bima Yojana,
  • Pradhan Mantri Jeevan Jyoti Bima Yojana,
  • Pradhan Mantri Fasal Bima Yojana.
  • The Ujjwala scheme for giving LPG connections to the poorest households,
  • The emphasis on Aadhaar and on direct benefits transfer to bring transparency in the government functioning.
Discuss some of the recent changes in the relationship between Center-State. What steps would you suggest to achieve Minimum Government and Maximum Governance.


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